Mooncakes
Mooncakes were a big part of my time in Hong Kong and Shenzhen. This year, mid-September marked mid-autumn festival across Asia or known as Chuseok in Korea. It is similar to harvest festivals that happen elsewhere in the world.
It is celebrated in Chinese communities with mooncakes. Mooncakes traditionally have been made of fat filled pastry cases and lids filled with red bean or lotus seed paste and a salted dried egg yolk.
Mooncakes are moulded and have auspicious messages or symbols embossed on the top, like the double happiness ideogram which also appears on new year decorations and at weddings.
In the past mooncakes have been used to make political statements in Hong Kong where they were embossed with messages against the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill 2019. This mirrored mooncake history, where concealed messages were alleged to have been used to ferment rebellion against Mongolian rule in China centuries ago.
China saw a halving of mooncakes sold this year, compared to last year. This is a mix of fast-moving events like the state of consumer spending and longer term factors including gifting culture and attitudes to health and fitness.
The economy
The consumer economy seems to be doing worse than industrial output. Youth unemployment is still an issue.
Gifting culture
China saw a crackdown on premium priced mooncakes as part of a government move against ‘excessive consumption‘ driven by societal excess and ‘money worship’. This overall movement has dampened luxury sales. The Chinese government stopped officials buying mooncakes a decade ago as part of a crackdown on corruption.
Some consumers just aren’t into them
They were as divisive as Christmas cake is in Irish and British households. Brands like Haagen-Daz and Starbucks have looked to reinvent mooncakes into something more palatable.
Health and fitness
Health and fitness has been steadily growing as a trend in China. A number of reasons have been at play including changing beauty standards. Chinese women are still going to favour slimness over muscle, but home workouts and running have been increasing in popularity. The fitness industry has been growing and the Chinese government has also tried to foster interest in winter sports. So there would be a good reason to avoid ruining all the hard work that you put in by eating mooncakes.
Business
Nike CEO John Donahoe to Step Down | BoF
Economics
Why Do Workers Dislike Inflation? Wage Erosion and Conflict Costs* by Joao Guerreiro, Jonathon Hazell, Chen Lian and Christina Patterson – workers must take costly actions (“conflict”) to have nominal wages catch up with inflation, meaning there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers choose whether to engage in conflict with employers to secure a wage increase. We show that, following a rise in inflation, wage catchup resulting from more frequent conflict does not raise welfare. Instead, the impact of inflation on worker welfare is determined by what we term “wage erosion”—how inflation would lower real wages if workers’ conflict decisions did not respond to inflation. As a result, measuring welfare using observed wage growth understates the costs of inflation. We conduct a survey showing that workers are willing to sacrifice 1.75% of their wages to avoid conflict. Calibrating the model to the survey data, the aggregate costs of inflation incorporating conflict more than double the costs of inflation via falling real wages alone
FMCG
Unilever ends up as a punching bag for Greenpeace and having their purpose blown up. As a campaign idea, the public celebration by the Dove brand team of the 20th anniversary of Dove’s real beauty positioning and creative left themselves open to this. Greenpeace used a skilful reframing in this creative.
The reason why the developing world seems to be disproportionately affected by plastic waste highlighted is for a number of reasons:
- A lot of and paper and plastic recycling is shipped abroad. It used to go to China, but they declined to accept waste to recycle from 2018 onwards. So this waste went to other markets.
- Developing markets have single portion packaging so that FMCG companies can distribute via neighbourhood shops and sell the product for the price a consumer can afford.
- Plastic is easier to colour, manufacture, package and transport than glass, metal or coated paper. Biodegradable or effective post-use supply chains are well behind where they should be. And even if you were open to recycling, there may be brand issues.
Innovation
Chinese scientists claim they can use Starlink satellites to detect stealth aircraft | BGR
Japan
AI will help Sony expand Japanese anime’s growing fan base | FT – but would also help competitors out-produce Sony. Expect a Chinese anime avalanche.
Marketing
Campbell’s drops the ‘soup’: what the evidence says about adapting brand fundamentals | WARC
Media
OpenAI Messed With the Wrong Mega-Popular Parenting Forum | WIRED
Retail media frenzy muddies negotiations with brands, who agency execs say must spend or ‘suffer the consequences’ – Digiday and Retail media networks put the squeeze on brands | WARC – Spending on RMNs could be seen as part of normal partnership agreements between brands and retailers that have traditionally included marketing commitments. That shades into a grey area if retailers become focused primarily on growing their ad business, but those same retailers can’t expect brands to spend more unless they can demonstrate results. At the same time, brands have their wider media mix to consider.
In context
- The pairing of advertisers with consumers close to the point of purchase via rich, first-party data is leading to better ROI relative to other channels for some advertisers and is cited as a key driver of increasing retail media investment.
- Retail media is growing in double digits every year; it currently accounts for around 14% of global ad spend and is projected to account for 22.7% of online advertising by 2026.
- Retail media is no longer a ‘medium’ in the conventional sense but is instead evolving into an infrastructure underpinning the entire digital advertising ecosystem.
Content Creators in the Adult Industry Want a Say in AI Rules | WIRED
Security
JLR’s letter: what Land Rover’s doing to stop your older car getting nicked | CAR Magazine – update on JLR’s security crisis
Software
A brief history of QuickTime – The Eclectic Light Company
Technology
NTT Data builds a mainframe cloud for Banks • The Register – mainframes are still amazing for large scale batch processing
